by Vijeta Uniyal at legalinsurrection.com
Financial Times UK: “China’s imports of semiconductor equipment have surged to record highs.”
Despite U.S. sanctions, China is building up its chipmaking capabilities at breakneck speed by importing manufacturing equipment at a record pace. “China’s imports of semiconductor equipment have surged to record highs,” the UK daily Financial Times reported Friday as China increases naval and military buildup around Taiwan.
Beijing is upgrading its chip manufacturing capabilities as it restricts the U.S. from procuring raw material needed for cutting-edge microchips. Last month, China banned the export of critical minerals used in high-performance chips, particularly those needed in the production of defense systems. “China set export restrictions on two minerals the U.S. says are critical to the production of semiconductors, missile systems and solar cells,” The Wall Street Journal reported July 4.
The Financial Times reported:
China’s imports of semiconductor equipment have surged to record highs ahead of the implementation of export curbs by US allies.
Chinese customs data shows the country’s chip production tool imports in June and July totalled nearly $5bn, up 70 per cent from $2.9bn in the same period last year.
Most of the imports came from the Netherlands and Japan, two countries that have imposed export restrictions on chipmaking equipment as they work with the US to slow China’s technological advancement. (…)
While it is not clear how much of the increase in imports relates to tools that will be covered by restrictions, the purchases suggest China wants to avoid any disruption to its plans to expand chip production.
China is also building up its military with the aim of annexing Taiwan, by far the world’s biggest chipmaker. As UK weekly The Economist notes, “Taiwan produces over 60% of the world’s semiconductors and over 90% of the most advanced ones.” Most of this high-end manufacturing is done by a single company, the Taiwan Semiconductor Manufacturing Corporation (TSMC).
A Ukraine-style invasion of Taiwan could disrupt the U.S. economy and military, which heavily depends on the import of chip components from the island nation. In today’s digital economy, chips are key building blocks of almost all devices. High-end chips power a wide-range of military systems in modern-day warfare, including battlefield communications, air defense, missiles, artillery systems, and aircraft.
China is also building up its military with the aim of annexing Taiwan, by far the world’s biggest chipmaker. As UK weekly The Economist notes, “Taiwan produces over 60% of the world’s semiconductors and over 90% of the most advanced ones.” Most of this high-end manufacturing is done by a single company, the Taiwan Semiconductor Manufacturing Corporation (TSMC).
A Ukraine-style invasion of Taiwan could disrupt the U.S. economy and military, which heavily depends on the import of chip components from the island nation. In today’s digital economy, chips are key building blocks of almost all devices. High-end chips power a wide-range of military systems in modern-day warfare, including battlefield communications, air defense, missiles, artillery systems, and aircraft.
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